Billionaire investor Ray Dalio said Trump may be moving towards us toward a world order, just like the 1930s
The founder of Bridgewater Associates, one of the world's largest hedge funds, expressed concern that President Donald Trump's economic agenda could lead to “things worse than a recession.”
“At the moment, we are at the decision point, very close to a recession,” billionaire investor Ray Dalio told NBC Meet's media. “And I'm worried that if I don't do well, I'll be worse than a recession.”
An economic recession is usually defined as negative GDP growth for two consecutive quarters. More “deep” changes will be a subdivision of the current monetary order. (It is worth pointing out that Dalio correctly predicted the 2008 financial crisis.)
Trump has caused global economic chaos due to his march, no longer options tariffs, and recently announced a 90-day pause in tariffs on “reciprocity”, except for China.
In this case, the tariffs have been increased to 145%. With the impact of turbulent markets and consumer confidence, more economists believe that there may be a recession.
But Dalio believes that Americans may face more than just an economic recession. Tariffs, coupled with high levels of debt and rising superpowers challenging existing superpowers, could lead to “deep changes” in the world order.
“A era like this is very similar to the 1930s,” he told NBC.
The end of World War II ushered in a new monetary and geopolitical world order. But history often repeats itself.
He told NBC that the decomposition of these orders is measurable and I am concerned about the breakdown of this command, especially since it does not need to happen. He told NBC, adding that there are better ways to restructure debt.
He said. But so far, tariffs are similar to “putting rock into production systems.” In other words, highly destructive.
“We are at a juncture right now,” he told NBC. He believes Congress needs to “manage the trade deficit the right way” and reduce the budget deficit to 3% of GDP. If not, there will be a supply and demand problem for the debt, and “the result will be worse than a normal recession.”
